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A Close Call and an Uncertain Future: an Assessment of the Past, Present, and Next Steps for Philadelphia’S Largest Refinery

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A Close Call and an Uncertain Future: an Assessment of the Past, Present, and Next Steps for Philadelphia’S Largest Refinery A Close Call and an Uncertain Future: An assessment of the past, present, and next steps for Philadelphia’s largest refinery Brian Abernathy and Adam Thiel November 2019 City of Philadelphia 1 Message From The Co-Chairs In the early morning hours of June 21, 2019, Philadelphia was rocked awake by a series of explosions at the large refinery site in South Philadelphia. Immediately afterward, as the scope of the incident became more widely known, many residents began to ask questions and express concerns over what happens beyond the refinery’s fence line, what impacts the refinery has on public health and safety, and what will happen in the future – to the refinery, to the site, and for themselves. For many reasons, the case of the Philadelphia Energy Solutions (PES) Refinery is not a typical example of a large employer closing its doors. The refinery has been a significant part of Philadelphia’s economic landscape for more than 150 years, yet it remains a controversial one. Unlike most employers, the refinery sits at the intersection of many different public and private interests – many of which are inherently in conflict with one another – and the very presence of a large oil refinery in our City raises a series of valid questions: • Is the existing refinery safe? What are the dangers and how • How is the pollution from the site impacting communities? What are residents being protected? is the relationship between the refinery and those communities? • What will happen to the refinery workers? How can the • How does the refinery contribute to climate change or fit existing jobs be saved or replaced? into the long-term future of energy? • What is the economic impact to the City, to the state, and to • How economically sustainable is the refinery in the long term? the region of the refinery closing? • How can/should the 1,300-acre site be used in the future? • Does a refinery, and all of the inherent risks associated with • What are the current and future environmental dangers and one, belong in the middle of such a densely populated area? risks on the site and how are they going to be addressed? Due to both the very prominent public safety concerns that were heightened as a result of the incident on June 21st, as well as the intersection of so many different interests, having a public conversation and process to sort through these issues was of paramount importance. Mayor Kenney created a Refinery Advisory Group to organize a process that allowed City leaders to learn about the refinery from the points of view of all stakeholders, including from those most directly impacted by the refinery – nearby residents and PES employees. The Advisory Group process provided a way to make sure we learned as much as possible, and created the opportunity for concerned residents and interests to share their thoughts and concerns directly with the City. This report provides a summary of the information, perspectives, and concerns that we heard through the Advisory Group process. It also provides factual context behind the history of the refinery, its positive and negative impacts, and clarifies the role of City government in defining the future of the site. The report also responds to some of the common questions that emerged throughout the Advisory Group process. Lastly, the report contains recommendations around a set of values for the future use of the site and specific operational recommendations for the City to implement as the future for the refinery site becomes clearer – whatever that future may be. We have been clear throughout this process that we do not expect every stakeholder or interest to be fully satisfied with this process or this report. Finding consensus around how the site should be used in the future would be challenging in the most ideal circumstances. While the City has no direct control over this privately-owned site, which is in the midst of a bankruptcy proceeding, and we cannot dictate its future, we hope to influence the future of PES. We have attempted to conduct this process and write this report with clear eyes, active listening, and open minds so the City is best prepared for supporting and encouraging a future for the site that is cleaner, safer, and better for Philadelphians than it ever has been in the past. Sincerely, Brian Abernathy Adam Thiel Managing Director Fire Commissioner and Director of Emergency Management 2 Table of Contents ABOUT THIS 4 About the Refinery Advisory Group REPORT This report is authored by the two co-chairs and based on 7 The Philadelphia Refinery many perspectives shared through the Advisory Group process. The report is intended to provide the public, other City officials, and other stakeholders with an overview of the issues surrounding the refinery and the information gathered Benefits of Refinery 13 through the work of the Refinery Advisory Group. The report concludes with a series of values statements intended to define the suggested conditions under which City officials 17 Costs of Refinery should evaluate its approach to proposals for how the site may be used in the future. Though this report contains several recommendations for how City operations should be 24 The Incident of June 21st evaluated and strengthened in the future, as well as several recommended attributes and features that future owners of the site should consider implementing, it does not attempt 27 Current Status to make any specific recommendation for how this privately- owned site should – or should not – be used in the future. This report was drafted and reviewed by city staff and 30 Potential Reuses many of the cited reference materials are available at www.phila.gov/refinery. The report does not reflect the views of the Advisory Group as a whole or its individual 35 Next Steps Moving Forward members. 42 Conclusions 43 Acknowledgements 44 Sources 3 process – to bring forth subject matter experts and stakeholders who could present to City officials and the public on various issues About The that the City of Philadelphia should consider as the future of the Refinery Advisory refinery site comes into clearer focus. This report represents a summary of the information that the City has learned through this process and outlines the values the City Group will apply to evaluate and respond to proposals for the future use of the refinery. The report also contains several recommendations Introduction and Background from the perspective of the co-chairs for steps the City should take to improve its operations in the future. On Friday, June 21st, 2019, at approximately 4:00 am, a major The report draws heavily upon the information that members explosion rocked the Girard Point facility of the PES refinery of the Advisory Group organized and presented to the City. complex in South Philadelphia. The explosion was heard and felt Though a draft of the report was shared with the Advisory Group throughout the surrounding communities, and dramatic video prior to its public release, this report represents the views of the footage of the incident was featured on national news – leading City and not the views of the Advisory Group as a whole, or its to a heightened level of public interest and concern regarding individual members. the refinery. Thanks to the efforts of the PES fire brigade, the quick actions of the highly trained staff on duty at the refinery, and the Philadelphia Fire Department, the incident and its immediate impacts were contained on the refinery property without serious injuries to refinery workers, first responders, or community MISSION members. However, the incident raised serious questions and concerns in the minds of many regarding the refinery – The Refinery Advisory Group assembled a group of particularly since another smaller and unrelated fire occurred at stakeholders with diversity of experience, knowledge, and another portion of the refinery several weeks prior to June 21st. perspectives on the PES refinery site and its operations. The Advisory Group focused on: The day of the explosion, Mayor James F. Kenney called upon • Providing data on how the announced potential Managing Director Brian Abernathy and Fire Commissioner and closure of the PES facility will impact Philadelphia with Director of Emergency Management Adam Thiel to convene respect to the economy, environment, and public a working group to evaluate the cause of and response to the health and safety. incident with the intention of making recommendations about what could be improved moving forward. • Providing input regarding the potential reactivation or reuse of the site, as well as understanding the Several days later, on June 26th, the leadership of PES obstacles, limitations, and role of the City in the announced their intention to cease operations at the process. refinery and market the complex for a sale. Following that • Sharing ideas regarding uses for the site that are both announcement, City leadership refocused the working group economically feasible and positive for the City. on the future of the site. The Refinery Advisory Group was • Organizing, through a committee structure, feedback comprised of representatives from numerous constituencies from members of different constituencies and the and stakeholder groups affected by the refinery. Members were public in an effort to better inform City officials and chosen to represent various stakeholder groups impacted by members of the Advisory Group. the refinery closure – business, community, labor, academic and environmental experts, and government officials – and conflicting points of view were encouraged. Unlike many task forces or working groups organized by government, the charge of the Refinery Advisory Group was not to make recommendations or policy decisions as a group. Rather, the members were tasked with organizing the information-gathering 4 Process The Advisory Group process was designed to be open, transparent, and informative.
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